TLDR
- The closure of the American government interrupts the work of the dry, thus delaying the regulation of cryptography.
- The growth of Bitcoin and Altcoin is slowed down while the dry suspends policy changes.
- TD Cowen predicts longer delays in cryptography policy once the government resumes its activities.
- The federal reserve and the FDIC could play a more important role in the cryptography policy.
The ongoing closure of the US government has aroused concerns about the cryptocurrency market, according to the investment bank TD Cowen. The company warned that the closure, which results from the failure of the congress to achieve a financing agreement, has stopped regulatory progress in the cryptography sector. Federal agencies such as Securities and Exchange Commission (SEC) being considerably affected, the closure could have long -term effects on Bitcoin and Altcoins.
While the government’s closure continues, the SEC has suspended its work on significant political changes affecting the cryptography sector. These developments include the approval of new digital asset products, tokenized shares and counterparts on the cryptocurrency (ETF) of cryptocurrency, which have all experienced significant delays. The TD Cowen TD research group in Washington, led by Jaret SEIBERG, noted that less than an agreement is concluded to end the closure, it is unlikely that these crucial initiatives are materialized in the short term.
The work of the dry on cryptographic policy is at a standstill
The SEC has been strongly involved in the development of regulations likely to have an impact on the future of cryptocurrencies. These regulations include exemptions for new cryptographic products and digital assets offering tokenized actions, which could open the door to a more institutional adoption of cryptocurrencies. However, the operations of the SEC being largely suspended, the progress on these questions are completely in a standstill.
Jaret SEIBERG of TD COWEN stressed that the closure does not only delay the work in progress, but will also create a background of tasks once the government operations have been repeated.
The closure led the dry to operate with only a small fraction of its staff, limiting its ability to deal with urgent questions linked to cryptography or to approve pending requests, including ETF requests which could have a significant impact on the prices of Bitcoin and Altcoin.
Cryptographic ETFs and delays in approvals
One of the most important effects of the government’s closure was stopped with the cryptographic ETF approval process. Several Cryptographic ETFs were about to receive the approval of the dry, and the market observers expected significant movements on the market.
The delay in approval means that these potential products cannot enter the market, which could affect institutional investments in Bitcoin and Altcoins.
SEIBERG stressed that limited DRI operations could leave the approval process in uncertainty for weeks or even more. Consequently, the cryptography markets may experience slow growth in the near future, as many investors expect lighter regulatory executives to carry out large -scale investments in this area.
The federal reserve and other agencies are involved
While the work of the SEC on the regulation of cryptography are at staller, other institutions such as the Federal Reserve, the office of the Currency Controller (OCS) and the Federal Deposit Insurance Corporation (FDIC) are always operational. These institutions have the power to influence cryptography policies, in particular with regard to stable parts, the custody of cryptographic assets and payment systems based on tokenization.
TD COWEN SEIBERG suggested that these institutions could fill the regulatory vacuum left by the dry. “We will closely monitor the measures that these institutions concern for the banks to issue stable parts, storage of cryptographic assets and the development of tokenization systems are taken,” he said.
Although the SEC remains the main regulatory body for many aspects of the cryptography industry, the growing role of these other agencies could shape the future of the sector unexpectedly.
